‘Record demand’ for index-linked Gilts stems from pension duration gap

first_img“However, with circa £400bn of index-linked Gilts in issue versus around £1trn of inflation-linked pension liabilities, the supply and demand imbalance is unlikely to be eased any time soon.”The issuance, which matures in 2058, will grant many institutions the ability to address both duration and maturity gaps in their existing hedging portfolios, according to Barron.“In addition, the significant supply at the syndication has highlighted hedging opportunities for pensions schemes that have flexible LDI mandates in place to take advantage of the current attractive pricing for hedging inflation risk separately to interest rate risk,” she said.“The cost of hedging long-dated inflation risk using either inflation swaps or index-linked Gilts with their interest rate sensitivity removed is at the most attractive level in over a year.”The comparatively low volume of index-linked Gilts, when viewed against pension liabilities, has caused the UK National Association of Pension Funds to warn that it was “creating risks” for pension funds.“There has been increasing frustration from schemes that, to reduce their interest rate and inflation risks, they are effectively ‘forced’ buyers of Gilts with low or negative real yields,” the association said in June. A UK Gilt issuance that attracted £14.5bn (€18.3bn) in offers is proof that pension investors are keen to address their duration mismatches in their hedging profiles, despite falling bond yields.Following the syndication of £5bn in 45-year index-linked Gilts, AXA Investment Managers (AXA IM) said interest, which stood at £14.5bn, proved there was still significant demand for such issuances, despite a negative yield of 5.3 basis points a year.Lucy Barron, senior solutions manager at AXA IM, said the demand clearly stemmed from domestic pension providers wishing to manage liability risk.“Index-linked Gilts continue to be seen as the best match to inflation-linked liabilities,” she said.last_img read more

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Rex Ryan escalates feud with Baker Mayfield

first_img“I am just basing things on fact and what I see,” Ryan continued. “I only had 30 years of coaching experience, 20 in the NFL, so I can see where he would question me.”Following the Browns’ 40-25 win over the Ravens on Sunday, Mayfield was asked if Ryan’s comments added any extra motivation. Baker Mayfield says Rex Ryan’s criticism wasn’t motivation to win. pic.twitter.com/7TV5NmHZQi— ESPN (@espn) September 29, 2019Mayfield seems like he’s ready to move on from this saga. Rex Ryan just turned up the heat on his feud with Baker Mayfield.The former Jets coach wore Cleveland Browns colors on “Sunday NFL Countdown,” after the quarterback responded Wednesday to the ESPN analyst calling him “overrated as hell.” “Whatever. In the wise words of Freddie Kitchens, ‘If you don’t wear orange and brown, you don’t matter,’” Mayfield said Wednesday about Ryan’s comments. “Rex Ryan doesn’t have any colors right now for a reason, so it’s OK.”Baker Mayfield: “If you do not wear orange and brown, you do not matter”Rex Ryan: pic.twitter.com/Y8KMV55sDs— Barstool Sports (@barstoolsports) September 29, 2019MORE: Can the Browns flip their season around vs. Ravens? Ryan first sparked the dispute with his comments on Mayfield during Monday’s “First Take.” He added more fuel to the fire on Sunday, telling the quarterback not to be “the weak link” on the Browns.”Baker Mayfield better be happy I’m not in the black and purple today … ’cause he’d be in trouble.”–Rex Ryan responds to Baker Mayfield’s comments pic.twitter.com/FIUKVicqer— ESPN (@espn) September 29, 2019“Baker Mayfield better be happy I’m not in the black and purple today on that sideline, ’cause he’d be in trouble,” Ryan said ahead of the Browns’ game vs. the Ravens. “Here’s one thing I know about Baker Mayfield: Unlike any other quarterback in the National Football League, he’s got two Pro Bowl receivers (Odell Beckham and Jarvis Landry) that he’s throwing to. No other team can say that. They’ve got two of them. By the way, this offensive line that’s been much-maligned, they’re ranked second in pass protection. So I don’t get it. Where’s the correlation? He’s been sacked the [fourth]-most times in the NFL, so something’s not jiving.last_img read more

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